2 days TRT/GMT
- All personnel in the gas or associated industries needing to improve their knowledge and understanding of gas trading and pricing mechanisms.
- This training provides a better understanding of the structure, the methods of operation, the uses and the impacts of gas physical, financial and paper trading.
- Upon completion of the course, participants will be able to:
- analyze the fundamentals of gas supply and regional demands,
- review the different gas trading markets and types of transactions,
- understand the basic structure of long term contracts,
- comprehend the hedging techniques available for protection against fluctuations in prices.
- Basic knowledge of natural gas and LNG chain.
Ways and means
- Examples of contracts.
- Statistical data.
GAS SUPPLY & DEMAND 0.25 day
- Evolution of gas demand. Projections.
- Gas reserves and production.
- Gas producing countries. International supply projects.
- Regional gas demands.
- International trade. LNG trading.
LONG TERM CONTRACTS 0.5 day
- Types of contracts.
- Features of long term contracts.
- Contractual quantities, nominations and Take-or-Pay.
- Gas pricing: indexation principle.
- Concepts of market value and cost plus.
SPOT & FORWARD MARKETS 0.5 day
- Spot markets.
- Forward contracts.
- North American Hubs.
- Spot markets in UK and continental Europe.
- Price References and the role of reporting agencies.
FUTURES MARKETS 0.5 day
- Features of gas Future contracts.
- Exchanges and their organization: NYMEX, ICE.
- Hedging using Future contracts.
- Basis risk and hedging imperfections.
RISK MANAGEMENT 0.25 day
- Swaps: principles, basics and characteristics.
- Options (call, puts): principles, basics and characteristics.
- OTC derivatives: caps, floors, collars.